Datto has purchased cybersecurity provider Infocyte to help MSPs protect, detect and respond to cyber threats found in endpoints and cloud environments.
The software vendor said Infocyte offers both endpoint detection and response (EDR) technology and managed detection and response (MDR) services. Infocyte continuously collects and correlates endpoint data to identify potential threats, and its technology is backed by analysts in a security operations center that can respond to cyber threats in real time.
“MSPs are now basically in the security business,” Weller told CRN. “When you come to work every day, the MSP has to think, ‘I need to secure my clients’ digital assets.'”
Infocyte’s capabilities will be merged with the threat detection expertise Datto acquired from BitDam in March, as well as the company’s organic security investments. Specifically, Weller expects the Infocyte acquisition to bolster Datto’s RMM (remote monitoring and management) Ransomware Defense and SaaS Defense application security prowess.
Datto’s SaaS Defense protects both Google Workspace and Microsoft 365, the latter being particularly relevant since two-thirds of cyberattacks against MSPs go through a Microsoft 365 inbox. Infocyte’s technology will also help protect PCs and servers for the company’s 18,000 MSP clients once layered on top of the Datto RMM product, according to Weller.
“This gives us our first broader package for endpoint security,” Weller said. “It was too good to pass on.”
Terms of the acquisition – which closed last week – were not disclosed, and Datto’s stock rose $0.38 (1.58%) to $24.50 per share in the discussions Thursday morning.
Infocyte was founded in 2014, employs 27 people and has raised $12.7 million in six external funding rounds, according to LinkedIn and Crunchbase. Infocyte has been led since February 2018 by former SonicWall CEO Curtis Hutcheson. Hutcheson joined Datto in a role focused on business development for the security side of the business, according to Weller.
“Securing endpoints against advanced threats continues to be a major challenge for SMBs,” Hutcheson said in a statement. “With Datto’s partner community and its growing security portfolio, we will be able to significantly extend our reach to millions of endpoints under management, enabling Datto partners to provide their SMB customers with detection technologies and peak response.”
Datto plans to integrate Infocyte’s technology into its RMM platform sometime in 2022, which Weller says will further secure endpoints and strengthen a key first line of defense for MSPs. Infocyte will also join Datto in building on its growing set of security offerings provided by MSPs, according to Weller.
Infocyte can detect and orchestrate the response to sophisticated threats, and its technology helps organizations maintain compliance, stop ransomware and account takeover, reduce risk, optimize security operations, and scale capabilities. security teams. The company’s Series A funding round in January 2017 was led by LiveOak Venture Partners, while its Series B funding round in February 2018 was led by Toba Capital.
The company’s “Response Ready” program allows partners to pre-deploy Infocyte at very low cost and respond quickly to suspected security events before they become an incident, according to the CRN 2021 Partner Program Guide ( PPG). Infocyte said its new Microsoft 365 security module will also be a great opportunity for partners, according to PPG.
Infocyte has a four-tier partner program based on the number of devices under contract and works with technology partners such as Check Point and AT&T and distribution partners such as Dark Rhino Security and Solutions Granted, according to the company’s website. . The company’s channel program has been led since 2019 by vice president of sales Chris Auger, who, like Hutcheson, was previously at SonicWall.
From a metrics perspective, Weller said Datto plans to track financial numbers such as the number of terminals under management and the incremental revenue generated by each terminal. Weller said the company will also track the effectiveness of the technology by monitoring the number of security incidents that are escalated and corrected using Infocyte technology.
“Deep down, we feel like we’ve always been a security company,” Weller said. “We are looking for technology in the security space that we build and/or acquire that will be effective.”